Zoom Communications (ZM) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Zoom Communications

NasdaqGS•Technology•Software - Application

$88.77-3.39(-0.04%)Market closed

Market Cap

$26.00B

P/E

8.0x

P/S

5.2x

P/B

2.3x

Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation. In addition, the company offers Zoom Contact Center, an omnichannel solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.

How this company scores

GoodMetricSide Score: 79/100

Strongest: Profitability (22/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability22/25

Growth21/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality21/25

Strengths

Strong marginsHigh ROERising earningsInterest easily covered

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 8.0x5y range 8.0x – 3301.3x

Currently below its 20-quarter median.

P/S · 5.2x5y range 4.0x – 20.9x

Currently near its 20-quarter median.

P/B · 2.3x5y range 2.2x – 16.0x

Price & Volume

Market Cap $26.00B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $4.99B
Q. Revenue: $1.28B
TTM EBITDA: $1.38B
TTM Op. Income: $1.19B
Q. Op. Income: $314.32M
TTM Net Income: $3.26B
Q. Net Income: $1.54B
EPS: $5.27
Shares Out.: $292.88M

$4.99B in TTM revenue grew 5.0% YoY, reaching $1.28B last quarter. TTM EBITDA of $1.38B and TTM operating income of $1.19B show growth is flowing through to the bottom line. TTM net income of $3.26B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 77.2%
EBITDA Margin: 27.1%
Op. Margin: 24.6%
Net Margin: 120.8%

Op. margin of 24.6% is down 1.8% YoY — costs are rising relative to revenue. Net margin at 120.8% and gross margin of 77.2% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 7% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 8.0x
P/S Ratio: 5.2x
P/B Ratio: 2.3x

At 8.0x P/E, the stock trades below typical market levels. P/S of 5.2x and P/B of 2.3x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has fallen for 6 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $13.59B
Cash: $931.99M
Long-Term Debt: N/A
Book Value: $11.30B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $494.75M
TTM Free Cash Flow: $1.93B
FCF Margin: 38.6%
FCF / Net Income: 0.6

TTM FCF of $1.93B on $494.75M in operating cash flow. The FCF / Net Income ratio of 0.6x means cash covers only part of net income — earnings quality needs attention. Over the past year, free cash flow is up 4% — a weakening trend.